Sanctions against beneficiaries who fail or refuse to take drug tests to get a job are being welcomed by employers.
BusinessNZ says the policy is fair because employers who have drug testing regimes in place apply them to all job applicants.
"All workers on those sites currently need to be subject to testing and be drug-free, and new employees coming off a benefit will not be treated any differently," chief executive Phil O'Reilly said.
"A safe workplace is every workers right - this is the fundamental reason for drug testing."
Social Development Minister Paula Bennett unveiled the sanctions on Tuesday, saying about 40 per cent of jobs listed with Work and Income have a drug-testing requirement.
Beneficiaries with work-seeking obligations will be penalised if they fail a test or if they refuse to apply for jobs which require a test.
They will have to agree to stop using drugs and will be given 30 days for drugs to leave their system, so they can take the test again, or their benefit will be cut by 50 per cent.
"Too many beneficiaries are missing out on job opportunities because of recreational drug use and that's just not acceptable," Ms Bennett said.
Beneficiaries assessed as being addicted to drugs will be supported to get help, while those on some prescribed medicines will be exempt from the requirements.
There will be no leeway for recreational drug users, Ms Bennett says.
The sanctions will be in welfare reforms due to come into effect next year.